HRM918-Strategic Management Of State Trading Organization

Identify an organization and assess the training need of the organization. Based on assessment, design a training programme for the organization.

 

1- Organization’s information

 

a. Description of the organization

 

b. Type of business the company is in and the industry in which the company is performing c. Organization’s vision , mission, values, objectives and strategies

 

d. Organizational structure/departments/functions and major works e. Skills, knowledge, ability and experience each job required.

 

2- Training need analysis a. Analyse the organization( HR SWOT)

 

b. Analyse the tasks ( tasks to be performed to determine required Knowledge Skills and Abilities (KSA’s)

 

c. Person analysis( performance, knowledge and skills to determine who needs training)

 

d. Develop training objectives e. Identify the necessary areas of the trainings required for the organization. f. Identify the methods of training g. Calculate training costs

 

3- Based on training need analysis, design and develop one short course for the organization which must be not shorter than one week or 10 hours contact time.

 

a. Identify learning outcomes or objectives

 

b. Based on the objectives develop training content ( areas and topics)

 

c. Identify resources/ facilities/tools/stationaries required for the training program.

 

d. Identify the facilitator requirement and qualification

 

e. Identify the costing for the training program f. Develop a raining evaluation form
 

Human resource management aims at developing a talented workforce (Choo & Bowley, 2007). Effective HRM facilitate in gaining competitive advantage and overcoming organizational weakness in the market (Chianga, Back, & Canter, 2005). Training is an art of preparing employees through development by providing required information and resources to them (Armstrong, 2007). It helps in enhancing management quality in the organization and the working life of the employees giving them an opportunity not only to be successful in their jobs but also excel in the career (Barbazette, 2005). This is training analysis and planning paper prepared on State trading organization of Maldives (STO). It include three main section, first section provide detailed organizational information, second section detailed analysis on training needs of the organization and third section deals with designing of training program to meet stated need. It facilitate in understanding role of training in organizational growth by analyzing different job profiles, their strengths and weaknesses.

State trading organization is a public limited company founded by Maldivian government in the year 1964. 81.63 percent of share is owned by Maldivian government and rest by public. It is headquartered at Kambaa Aisha Rani Hingun, Maldives and there are around 2000 employees working for the brand. In the year 2016, it was operating with revenue MVR 793 million (www.sto.mv, 2018). This company specializes in both retail and wholesale business at competitive price. This company operates in various islands and also has several subsidiaries dealing in different business. 

STO deals in different type of business, which include STO electronics, it is a consumer electronic brand established in the year 1993 dealing in home theaters, digital photography, video equipment, hi-fi system and microsystems. Another is home improvement products established in the year 1995 deals in home appliances, furniture and cooling system. In the year 1991 supermarket was established with the aim of providing food items at reasonable price, STO staple food, and STO construction deals with cement, river sand, roofing materials, STO fuel and lubricants. Several subsidiaries of STO include Allied Insurance Company of the Maldives Pvt Ltd, Maldives’ Gas Pvt Ltd, Fuel Supplies Maldives Pvt Ltd, Lafarge Maldives Cement Pvt Ltd, Maldives National Oil Company, Maldives Industrial Fisheries Co Ltd, STO Hotels and Resorts Pvt Ltd, Maldives Structural Products Pvt. Ltd and STO Maldives (Singapore) Pte Ltd (State trading organization plc , 2017).

Different products in which STO deals in wholesale market include Staple foods, Construction materials, Electronics, Power tools, Medical supplies and pharmaceuticals, etc.

All of wholesale products except staple foods are sold on retail basis.

Key vision of STO is to “Enriching lives through expansion and accessibility”. This open aims at strengthening national food security, enhancing availability of food at reasonable prices.

Organizational mission is to expand its present business through new market entry, diversification in new business and market. It also aims towards internationalization of business and become prominent international player in global market. It aims towards easy accessibility of food and other items to public at large and invest in human development to build a skilled and proficient workforce to ensure long run sustainability.

Key values of STO include caring, accessible, respectful, innovation and progressive.

• Strengthening key business units, fuel and lubricants
• Enhancing accessibility of products and services
• Develop effective operation system and diversify it
• Developing skilled, diversify workforce
• Streamlining business process, reducing costs, and improving resource efficiency

• For expansion business opt for corporate strategies such as subsidiaries and joint ventures, it help in subsidizing market risk and enter new market and business.
• For ensure sustainability company implemented sales target and sales incentive scheme, it aims towards increasing total sales
• Cost reduction strategy was implemented to enhance working capital.
• Reduction in logistics and warehousing costs associated with the business segment, it aims to build multi complex warehousing complex
• Improving performance in trading business by setting new KPI (www.sto.mv, 2018)

Present structure of STO is split by functional units such as human resource, logistics, import, export and construction unit. There is presence of centralized management system reporting system is done directly to chief executive officer of the company. There is centralized culture of collectivism where group and relationships holds more importance than individual success. Power index is also high with proper authority delegation but there is lack of proper authority delegation and bureaucratic structure makes decision making process slow.  (www.sto.mv, 2018)

• Human resource department
• Financial department
• Logistic department
• Business development department
• Public relation and media department

This section elaborates on weather training is required among employees or not, it analyzes problem and type of training required to overcome the same. It include SWOT analysis, task to achieve set knowledge skill and abilities (Halwes, 1998), it also include person analysis process to understand what kind of training is required by individuals. After understanding training requirements, objectives will be set, and then type of training requirements and its associated cost will be evaluated. Training needs were evaluated using direct observation and job description (Rathore & Maheshwari, 2013).

HR SWOT analysis is an effective told for strategic planning. The acronym stands for strength, weaknesses, opportunities and threats. It helps in understanding weather strategies are in alignment with stated mission and vision or not, future action required to overcome difficulties.

Key organizational issues for STO include increased competition, greater emphasis on cost reduction, and business expansion in new markets. Task analysis involves process of collecting information regarding job and its system; it involves steps that must be executed to complete a task, it also involves understanding of task environment such as work flow to meet expectation. Task statements for STO are as follow;

• Making staff aware regarding new credit management system, its implementation and proper use. This system is implemented by maintaining autonomy of each segment by allocating credit limit for every unit and customer.
• Need for improving employee performance in trading segment
• Need to improve sales by empowering employees
• Reduce cost
• Implement continuous improvement
• Need to enhance customer service in supermarket business segment

Here analysis on knowledge that is subject required to complete the task, technical and non-technical proficiencies and demonstrable capacity to apply the same.

Personal analysis deal with individuals required training, it aims to answer target segment eligible for training process and their level of knowledge, it also aims to understand their learning style, weather they possess skill required or not, factors that necessities training (Chopra, 2015). It involves three key stages, development of performance standard, gap between desired and actual employee performance and obstacles to effective performance (Noe, 2013). Different strategies that can be used by HR manager for performance pressure point analysis include observation, consultation, group discussion, records, and interviews (Phillips J. J., 2012). Here in STO performance pressure points were identified through observation, analyzing records and reports such as annual report, identified factors are as follow;

• New technology, there has been inclusion of several new software and technology in STO to enhance performance, employee support and business development, it is crucial to ensure employees are completely aware regarding usage of new system, its application and advantage
• Poor performance of the company in last year annual report through poor sales and high cost, low performance, job change by employees

Performance appraisal data has been used for person analysis, where response from supervisors and employees highlights knowledge, skill and abilities of individual employees (Pike, 2003).

After determining training needs, it’s time to design the training program for STO; four key areas must be focused by a strong training program, setting training objectives, reediness of trainees for training, principle of learning and instructions characteristics.

1. Aim is to teach trainees new credit management system developed by the company, its usage and application so that trainees will be able to carry out credit management task effectively, enhancing credit and investing performance in various departments.
2. Second aim of this training program is to increase total sales of the company, therefore employees will be trained on effective sales management technique, strategies to deal with customer, customer relationship management, understanding different issues encountered by employees and addressing solution. It will help in increasing total company sales, profitability and performance.
3. Third aim is to teach change adaptation, communication so that employees able to grasp new strategies reduce internal resistance and ensure growth.
4. To teach implementation of continuous improvement and quality management procedure to enhance service delivery, employee and customer satisfaction.
5. To teach usage of information technology for resolving several internal and operational issues, it will facilitate in enhancing internal operations.

Next step was to analyze readiness of prospective trainees by analyzing their skill, knowledge and abilities. This was done by evaluating employee’s self-assessment during performance appraisal. Further, training instructor also plays key role in training success, it will be provided by knowledge experts from the field of information technology, sales management and customer relationship management. 

Key areas for training in STO include providing employees information regarding new information technologies, enhancing their performance by increasing sales, employees and customer satisfaction.

Learning style plays important role in training and development; according to Noe (2008), learning is a stimulus among individuals that facilitate in knowledge development. Therefore trainer must adopt learning process to reinforce desired behavior. It includes Reinforcement Learning theory, Social Learning Theory, Cognitive Learning and Humanistic Learning. In STO context, it is advice managers should opt for reinforcement learning and social learning theory.

It also advice to opt for learning curve as it will help in continuous improvement in behavioral development and gaining competitive advantage. Therefore, certain behavioral training can be given continuously to improve efficiency and specialization.

After analyzing importance of training in STO, it’s time to evaluate type of training according to needs for upper, middle and lower level employees.

This training program is for new joiners with no work experience, it aims to provide knowledge regarding basic skill requirements, to understanding organizational mission, vision and value system.

This is the most suitable training programs for IT management and software knowledge. It can be provided within organization through hands on experience while working in the organization, it can be provided by senior manager or expert. However, while implementing on the job training program, trainer needs to evaluate its drawbacks as this method lack a well-structured training environment, poor training skills in managers and lack of performance evaluation criteria’s (Chianga, Back, & Canter, 2005). However, this is a cost and time effective training system; it will help employees in learning the use of new software’s and implementing the same. key steps that will be followed in on the job training include preparation regarding training requirement by stating clear agendas, reassuring employees, orient them on correct way of doing particular task, let the employee perform themselves then evaluate and give feedback (Gu & Sen Sui, 2009). This method of training will be adopted for making employees aware regarding credit management system and sales training. As sales can be learnt through experience, therefore practical lessons are crucial to understand different customer behavior and strategies to respond them. On the job training will be given through job rotation and coaching, it helps in understanding work in different department, as there is centralized system present in STO, it will help in creating harmony in different departments.

This program will be implemented for making employees aware regarding new software’s and its usage, it will be given by knowledge expert, therefore involve high cost but ensure goal centric information delivery (Sahu, 2005).

For performance development of employees in different department, it is advised to implement off the job training program that include series of management games, case studies and different approaches to motivate employees, enhance team building, inter personal skill and overall performance improvement (Kapp, 2012). Management games and simulation will be used to provide training on relationship management, this method help in crating simulation for various business scenarios with computer programs.

Organizations need to calculate cost invested in training against anticipated or actual outcome. It is very difficult to quantify training outcome. Different cost evaluating strategies include cost benefit analysis, or cost per participant versus saving per participant strategy (Ackahh & Agboyi, London). Elements that help in deciding cost per participant include Facilitator fees, training design, Course materials, Videos and workbooks, Facilities rental, Equipment fees, Production downtime, Administration and other miscellaneous expenses (Fisher & Ruffino, 1996).  Factors that can be used for calculating saving per candidate include reduction in error, customer turnover, and increase in total revenue, employee turnover, lower grievance, customer complaint and feedback, productivity maximization, lower cost of recruitment (Stone, 2011)

Based on training need analysis, design and develop one short course for the organization which must be not shorter than one week or 10 hours contact time.

The training of personnel in STO Maldives has following objectives to be achieved;

• Increase knowledge about the credit management system implemented by management in detail, its procedure, application and advantage for all employees.
• Improve employee sales skills by developing environment, employee skills for negotiation and sales
• Improve overall employee performance in all departments through implementation of performance incentive system, this training aims to provide employees detailed idea regarding this program and its application.
• Improve customer relationship management by improving work behavior of employees, so that they work effectively on assigned tasks according to their full potential.

The goal of this training program is to increase employee performance of STO in all departments internally and externally. This training program will include employees from all three management levels as it involves employees from all levels to implement any organizational change successfully. Therefore, key participants for this training program are as follow;

• Chief executive officer as all employees from various department reports here.
• Middle level officers as they are responsible for planning and implementation of programs, supervise departments
• Lower level employees who actually interact with customers, carry out work of different departments

With the help of need assessment, training area and subjects have been cited below

Designing a training program is the most important stage of planning, below is the list of training methods that will be used for this program;

• Lecture method involve passing of information related to particular task, this method is suitable for large number of participants. This training mode will be used for s
• Discussion method will be used for stimulating thoughts and discuss issues encountered by employees, it will facilitate in organizing an open discussion on issues and potential solution. It helps in sharing learning among team members, suitable for upper level management.
• Computer assisted learning is individual based learning, it will be done by citing all the information online to facilitate employees in understanding IT usage, performance management system and write their issues and take continuous assistance.
• On the job training will be extensively used through job rotation, enrichment to motivate employees, enhance performance, and help them in understanding working mechanism in different departments and function. It is a long term training procedure
• Business games will be included in 2 day special training program that will be organized.

It will be a two day training program for 5 hours each. Each day will include different short sessions of 1 hour and 1 hour break, it include lecture, discussion, idea on eLearning and management development games. Training require space for organizing the program, equipment’s such as laptop, video, booklet on different IT software’s and new schemes implemented by company, equipment’s for planned games and food. 

A facilitator is expected to be an expert in field of training; they must possess strong knowledge in selected subject and excellent communication skills. While rendering training program, facilitator needs to understand target group, their knowledge and skills. Trainer must come to the training session earlier than participants to check arrangements and a friendly chat with participants help in creating comfortable environment. While planning resources, trainer must ensure use of one visual aid per idea, less of information in presentation helps in more discussion. Facilitator personal style and appearance also matter, they must be confident, maintain eye contact, needs to be flexible if required. Here corporate trainer must be an expert in information technology, with certified program in corporate training.

 (Hackett & Hackett, 2003)

Below is the questionnaire that will be circulated at the end of training among participants to evaluate their learning, areas of concern and outcome from training (Griffin, 2010).

Instructions: Please give answers in writing, or indicate the extent to which you gained confidence in the topics you learnt today on a scale of 1 to 5.

Training aims at employee and organizational development, it’s an investment that help in long term growth. STO is a renowned organization in Maldives region with wide range of businesses, however still company opt for centralized approach of management that causes slow growth and performance hindrance. Management has made medium and long term strategic plans to improve performance in certain business through employee development. Suggested plan will help employees of STO in long term growth and organizational sustainability. 

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